The US benchmark crude oil failed to hold on to initial gains, losing ground for the fifth straight session as traders awaited the latest round of supply data.
On the New York Mercantile Exchange, West Texas Intermediate crude futures for April delivery lost 0.3% or 17 cents closing at $49.28 per barrel, as reported by Market Watch The WTI’s losing streak is the longest from August.
April delivery Brent crude failed to hold gains on the London’s ICE exchange, dropping 0.4% or 24 cents closing at $58.66 per barrel.
Both Nymex West Texas Intermediate and Brent crude posted losses of more than 2% on Monday, with sharper losses from WTI crude as market bears stayed focused on US oil inventory levels reaching record highs.
Weekly inventory data for US oil will come in on Tuesday.
The Economist Intelligence Unit reported in its last global report, “We believe that there is still enough low-cost capacity in the US to produce at lower prices, allowing supply to expand again in 2015-16, albeit at a much slower pace than in 2012-14.”
The EIU added, “Oil prices are also being affected by the strength of the US dollar, which we expect to appreciate further against the euro in 2015.”
Reuters quoted John Kilduff, partner at Again Capital LLC as having said, “The supply dynamic will be reinforced by the inventory reports and the data are simply too compelling to ignore, and it has consistently undermined the recent rallies.”
Nymex reformulated gasoline blendstock for March, the benchmark gasoline contract, dropped 1.6% or 2.4 cents closing at $1.6202 per gallon.
March delivery Nymex natural-gas futures rose 0.8% or 2.3 cents to close at $2.902 per million British thermal units.
To contact the reporter of this story; Jonathan Millet at email@example.com